AMTE shares up 30% amid Dundee MegaFactory plan

Shares of Thurso-based battery cell developer AMTE Power soared more than 30% on Thursday amid the company’s announcement that it has chosen Dundee as the preferred site for its first MegaFactory.

The development at Michelin Scotland Innovation Parc would create 215 highly skilled on-site jobs and 800 jobs in the wider supply chain during development.

AMTE is a developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets and it said the Dundee MegaFactory “creates a stepping stone to construct GigaFactories in the future, meeting the huge demand for battery technology.”

The company said the Dundee MegaFactory will have the capacity to produce more than 25,000 high added value batteries per day, over 8 million per year.

AMTE said it anticipates revenue generation of over £200 million per annum at full production.

The total required investment in the MegaFactory is estimated to be between £160 million and £190 million.

As a first step, AMTE has received an indicative offer letter from Scottish Enterprise regarding a potential package of funding and business support which is also expected to facilitate continuing discussions with other UK State owned enterprises, including the Automotive Transformation Fund,” said AMTE.

The MegaFactory is expected to be funded by a combination of grant funding, as well as traditional and government assisted debt and equity …

The plant is expected to be operational and in production by Q3 2025 based on current planned timings.

AMTE will utilise its in depth cell manufacturing experience gained through operating its plant in Thurso, Scotland to create a world-leading facility in Dundee.

Thurso remains a core manufacturing facility focused on production of AMTE’s cells and developing next generation cell technologies.”

AMTE said it has signed a binding Letter of Intent with Michelin Scotland Innovation Parc for the reservation of the site, ahead of a formal lease agreement to be signed in Q4 2022.

AMTE Power CEO Kevin Brundish said: “We are excited to announce Dundee as our preferred location for our first MegaFactory, a quantum leap for AMTE.

“The change in our execution strategy will accelerate our journey to mass manufacture of high value added, differentiated cells.  

“The MegaFactory will be a platform from which AMTE can harness our advanced inhouse capabilities to build manufacturing plants to meet the huge demand for battery cells – allowing us to rapidly scale up production and fast-track the path to achieving net zero.

“Battery cells are fundamental to enabling the UK’s energy transition and with this investment, we will play a key role in electrifying the vehicles, homes and industries of the future.

“The site at Dundee is the ideal location for a MegaFactory; it has local industry knowledge and is close to our current and future market in energy storage.

“We look forward to updating all stakeholders on our progress.”

Councillor John Alexander, leader of Dundee City Council, said: “This is an exciting proposal which has the potential to deliver hundreds of direct and supply chain jobs. 

“All partners are committed to delivering on the vision that we had for MSIP following the closure of the tyre factory.

“AMTE’s proposed MegaFactory is a great fit with that vision and would build significantly on the successes that have already been achieved in securing tenants for the Parc. We want to be at the forefront of new technologies.

“We want to have a workforce with the right skills for future needs. And, ultimately, we want to create sustainable employment for local people.

“We look forward to working closely with local and national partners to help progress AMTE’s plans and secure this major investment in Dundee.”